Chairman Seo Jung-jin: "U.S. 에볼루션 바카라 사이트 acquisition finalized in Q4…'Made in USA' strategy mitigates risk"

[by Yu, Suin] "Our group’s policy is to align with the 'Made in USA' directive if that is the position of the U.S. government. For a company whose primary market is the United States, this is an unavoidable responsibility. Regardless of whether a 15% tariff is enforced or a one-year grace period is granted, we are mobbing forward with the establishment of our own production facilities to mitigate any potential impact."

Celltrion Group Chairman Seo Jung-jin made these remarks during an online press conference held on the morning of July 29, underscoring the company’s readiness to respond proactively to potential U.S. tariffs. He emphasized with confidence that Celltrion has already partnered with a local contract manufacturing organization (CMO) in the U.S. and secured a production facility, thereby accelerating its expansion into the U.S. market.

Earlier that day, Celltrion disclosed through a public announcement that it had been selected as the "preferred bidder" for the acquisition of a biopharmaceutical production facility in the U.S., surpassing two global competitors. The facility in question is a large-scale current Good Manufacturing Practice (cGMP) production site for active pharmaceutical ingredients (drug substances, DS) owned by a multinational pharmaceutical firm.

Specific details, including the name of the company from which the 에볼루션 바카라 사이트 is being acquired, will remain confidential until the final agreement is signed, which is anticipated in in early October following consultations between the two parties. However, the 에볼루션 바카라 사이트 is known to be a specialized site for antibody drug production and has a history of manufacturing key biopharmaceuticals, including anticancer agents and treatments for autoimmune diseases. Seo further noted that the 에볼루션 바카라 사이트 is located in a major pharmaceutical cluster in the United States and includes additional land available for future expansion.

Seo explained that the decision to pursue the acquisition of the production 에볼루션 바카라 사이트 was driven by the need to mitigate the risks associated with potential U.S. pharmaceutical tariffs. He emphasized that, upon completion of due diligence and finalization of the acquisition, key products currently marketed in the U.S. will be manufactured locally, completely avoiding tariff-related impacts on those products.

"Our products are currently sold in 120 countries, and it is imperative that we adhere to the fundamental policies of each respective market. Policies are not shaped according to our preferences. If the United States intends to impose tariffs, there is only one viable course of action: to manufacture products that are made in the USA," Seo remarked.

"There are not many large corporations in Korea that lack the financial capacity to invest in local facilities, and financial institutions are also actively providing support," he further stated. "We intend to finance the project through a combination of our own capital and strategic partnerships with selected financial institutions. A total investment of around KRW 700 billion (approximately USD 506.6 million) will be allocated to our U.S. subsidiary, with immediate plans for additional expansion. Depending on the scope of tariffs imposed by the U.S., a smaller-scale expansion will require an additional KRW 300 billion, while a larger-scale expansion could necessitate a further KRW 700 billion."

Once the expansion is complete, the production capacity of the U.S. facility is expected to reach 1.5 times that of Celltrion’s Songdo Plant 2 in Incheon. With the Songdo Plant 2 already operating at full (100%) capacity, the increased manufacturing capability in the U.S. will enable Celltrion to strengthen its responsiveness to local market demands. In addition, to further enhance operational competitiveness, the company plans to retain and transfer existing personnel from the acquired facility.

"We plan to launch four new drugs this year, two in 2026, five the year after that, and an additional two in 2028. Currently, we have 11 biosimilar products on the market, and this number is projected to increase to 22 by 2030 and 41 by 2033," Seo stated. "To support the production of such a large pipeline, we must secure the necessary infrastructure. While we already manufacture products through agreements with local CMOs, having our own facilities is essential for maintaining operational flexibility. CMO contracts are not restricted with specific 'products,' meaning we retain the ability to produce them anywhere. It will not be too late to decide which products to outsource after the acquisition is finalized."

"The acquisition of the production facility is contingent upon approval from the U.S. government. Once approval is granted, we anticipate starting operations at the site in the fourth quarter of this year. However, the production of our own products will require a validation process, which may take up to 12 months. As a result, parallel production of our proprietary products is expected to begin in the fourth quarter of 2026," Seo further explained.

Moreover, Seo noted that 50% of the cGMP 에볼루션 바카라 사이트 being acquired will be exclusively dedicated to manufacturing the target company's biopharmaceuticals for five years under a CMO contract. This arrangement will allow for immediate revenue generation following the acquisition, thereby enabling a swift return on investment. Projected CMO sales are expected to reach several hundred billions of won. Celltrion's key products currently marketed in the U.S. will be produced using the remaining 50% of the 에볼루션 바카라 사이트, along with capacity from future expansions.

"The cost of sales ratio for produced manufactured locally will be slightly higher than that of products produced in Korea, but the difference will not be substantial. Furthermore, the CMO operations will not create additional cost burdens," he said. "Since the merger with Celltrion Healthcare, Celltrion's cost of sales ratio has been on a steady recovery trajectory. It stood at 47% in Q1, with targets of 44% for the second quarter, 38% for the third, and 31% by the fourth quarter. We anticipate total sales to reach KRW 4.6 trillion (approximately USD 3.3 billion) and operating profit to amount to KRW 1.6 trillion."

Seo also clarified that the current facility investment is unrelated to the newly established contract development and manufacturing organization (CDMO), Celltrion BioSolutions. "We will finalize our CDMO business strategy once the U.S. tariff policy becomes more clearly defined. In response to evolving policy developments, we intend to identify and announce the optimal solution for the CDMO business by the end of the year," he remarked.

"Due to its ownership structure, Korea will be able to respond more quickly to tariff-related challenges compared to Europe and Japan," Seo emphasized. "Companies are making efforts on par with those of the government to address these issues. By ensuring transparency and honoring our commitments, we aim to become a company more trusted by investors than any other in the world."